North Carolina Down Payment Support Programs

Online Payments - The North Carolina Housing Finance Agency has two amazing programs for First Time Home Buyers. These programs are the Mortgage Credit Certificate and also the deposit Assistance Program.

You buy a house and December 1, 2009 and should you meet the requirements for one of these programs, you may also qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? There is a First Time Home Buyer someone who hasn't owned a home within the past three years. Here is precisely the same qualifying definition.

A Mortgage Credit Certificate (MCC) is a federal tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. The MCC takes this a step farther. An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

You'll be able to claim 20% of the interest you pay as a credit in your federal income taxes, if you qualify for the MCC. You can save as much as .

If you do qualify for 2009, for the MCC, you'll have the ability to join this. This might reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the cost of the property and your income you are purchasing. Household income is defined as the “gross income of the mortgagor and any other man expected to reside in the dwelling who's 18 years of age or older.”

House price limitations that apply in Orange, Durham and Chatham Counties and the income are given below.

MCC Income Limitations 1 Man $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing Dwelling $210,000

The purchaser only has to pay $1,000 of their own funds and the load would pay around .

This plan has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it can be used in combination with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit help, nevertheless, can't be utilized in conjunction with the MCC. That is an either or scenario.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Persons $45,650 3 Men $51,350 4 Men $57,050

Down Payment Assistance Sales Price Limits New Home $210,000 Existing Dwelling $210,000